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The US central bank keeps the key interest rate unchanged

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The US central bank is maintaining the very high key interest rate, which is at a 23-year high. The bank is led by central bank governor Jerome Powell. Photo: Susan Walsh / AP / NTB

Of NTB | 05/01/2024 20:34:05

Economy and business: It is the sixth interest rate meeting in a row where the bank chooses to keep interest rates stable.

– In recent months, there has been a lack of further progress towards the inflation target of 2 per cent, says a statement from the central bank.

The central bank has maintained a high policy rate to try to calm demand and overcome price inflation, and a drop in inflation at the end of last year gave hope that the first interest rate cuts in a long time could be on the way.

But since then, price inflation has increased again, which put an end to the dream of interest rate cuts in the summer.

– The economic outlook is uncertain, and the committee is still very alert to the risks of inflation, the bank’s statement goes on to say.

The fact that hope is extinguished for interest rate cuts in the first half of the year increases the possibility that any interest rate cuts will coincide with the run-up to the presidential election in November.

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